... consumer demand. The graph below demonstrates how the growth of real incomes in recent years has funded the sustained growth in consumer demand, and that in the early '90s recession a steep fall in real incomes had a catastrophic impact on consumption, falling by almost -2% in 1991. The falling unemployment rate has also resulted in more people's real income increasing as they move away from welfare benefits to wages. The pattern of spending between non durable goods and services (goods that are destroyed in the act of consumption e.g. mars bar) and durable goods (e.g. washing machine) has also affected consumption. The real level of spending on durables has surged in the last eight years. This could be due to many things; firstly most significantly though is the falling price of durable goods due to massive advances in technology and transport infrastructure leading to globalization, e.g. ...

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